Woodley Hilderbrand & Sanders LLP

Thomas Frazier, CPA, Arthur Spoon, Jerry Hilderbrand, Kenneth Kolek

--- Update 7-11-2013 --- Arizona State Board of Accountancy Formally Disciplines Thomas K. Frazier (Respondent). Certified Public Accountant Certificate No. 6677-R. ASBA File No. 2013.047 --- DECISION AND ORDER (by Consent)

-- CONCLUSIONS OF LAW --
-- 1. The Board has personal and subject matter jurisdiction over Respondent ... and authority to discipline Respondent pursuant A.R.S. 32-741.

-- 2. ...Board may revoke or suspend Respondent's certificate to practice public accounting and take additional disciplinary action concerning Respondent's actions as described herein...

-- 3. If this matter proceeded to hearing, the State would introduce evidence it contends would show Respondent's conduct as described herein constitutes failure to comply with the applicable Board regulations...

-- 4. ...Certified public accountants ... shall exercise due diligence in the conduct of their tax practices...

-- 5. Pursuant to ... Interpretations of the Code of Professional Conduct adopted by the American Institute of Certified Public Accountants (AICPA) ... Respondent is deemed to have knowledge of the Board's rules.

-- 6. Respondent's conduct ... constitutes violation of A.R.S. 32-741(A)(4) ("Dishonesty ... in the practice of accounting"), and a failure to comply with the rules of Professional Conduct involving Integrity and Objectivity set forth in A.A.C. R4-1-455(B) ("Certified public accountants, public accountants, or firms shall not knowingly or recklessly misrepresent facts when engaged in the practice of public accounting, including the rendering of tax and management advisory services")...

-- 7. Respondent's conduct ... constitute[s] failure to comply with the rules of Professional Conduct involving Competence and Technical Standards ... specifically tax standards set forth in the AICPA Statements on Responsibilities in Tax Practice ... and as further interpreted in AICPA Code of Professional Conduct...

-- 8. The conduct and circumstances described ... are grounds for revocation, suspension, probation and other disciplinary action against Certificate No. 6677-R, pursuant A.R.S. 32-741(A), as defined in A.R.S. 32-701(6).

-- Thomas Frazier, CPA, who, falsified the tax filings of client Nick D'Arcangelo, announced the merging of his practice with Arthur Spoon & Company, Ltd., denoting the new firm will consist of himself, Jerry Hilderbrand, and Kenneth Kolek. Frazier proclaims the practice will initially operate as Frazier, Spoon and Company, PLC [sic] to meet AZ State licensing requirements.

"Both Mr. Hilderbrand and Mr. Kolek come from Colorado and Iowa, respectively, where they operate a [sic] very successful firms." ... "Their expertise will allow me to provide a wider range of professional services to both my business and individual clients. Our goal is to maintain and over time improve the services that each of you have come to expect. I will continue to be actively involved with each of your tax and accounting needs as I have in the past." comments Frazier.

-- Review posted Jun 16, 2013 -- Thomas K. Frazier CPA and part-time football official, conspired with football official and teacher Nick D'Arcangelo to falsify and manipulate D'Arcangelo's tax returns and tax liability. The evidence reveals the fraudulent tax filings generated inflated monetary enrichment for D'Arcangelo while substantially damaging D'Arcangelo's partner. Additionally, Tom Frazier failed to declare cash earnings paid to D'Arcangelo by football official Shannon Eastin for work performed by him on behalf of Eastin's business enterprise when Frazier prepared and electronically filed D'Arcangelo's tax returns. Ms. Eastin deferred the matter of the Form 1099 to Mr. Frazier who willfully failed to amend the falsified tax returns to include cash earnings paid to D'Arcangelo by Eastin thereby furthering D'Arcangelo's financial enrichment. For additional information including formal disciplinary actions, contact Arizona State Board of Accountancy. (Edited July 12, 2013)